Solved

A Typical Hectare of Land in Mount Gambier Can Produce

Question 192

Multiple Choice

A typical hectare of land in Mount Gambier can produce either 300 kilograms of beef or 100 kilograms of soybeans in a year.A typical hectare of land in Naracoorte can produce 150 kilograms of beef or 200 kilograms of soybeans.Which of the following is correct?


A) Naracoorte should produce soybeans because its opportunity cost of soybeans is lower.
B) Mount Gambier should produce soybeans because its opportunity cost of soybeans is higher.
C) Naracoorte and Mount Gambier should divide each acre evenly between soybean and beef production.
D) Mount Gambier should produce soybeans because its opportunity cost of soybeans is lower.
E) Naracoorte should produce soybeans because its opportunity cost of soybeans is higher.

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